1.1 Governance Standards: Scope, Hierarchy & Control

Ambiguity in organizational standards creates operational drag and inconsistent decision-making. TheThis chapter establishes the Dannie Operating System (DOS) functions as the definitivebinary source code for human interaction, management logic, and corporate governance within the company.governance. It replaces subjective interpretation with binarydefinitive standards for how peoplewe arehire, hired, coordinated,coordinate, and evaluated.evaluate, ensuring that while our manufacturing processes obey physics, our management processes obey logic.

System Scope & Authority

The DOS definesgoverns the architecture"Management Layer" (the software of the organization,company), not the "Technical Layer" (the physics of manufacturing. It governs the interface between employees and the company, and the protocols for decision-making.product).

GovernedScope byDecision DOS (Management Layer):Logic:

• People:If Recruitmentthe protocols,query onboardingconcerns logic,Recruitment, andOrg offboardingStructure, sequences.Meetings, or Authority Limits → Then consult DOS (this Handbook).
• Structure:If Hierarchy,the reportingquery lines,concerns andSolder functionalProfiles, roleComponent definitions.Footprints, or IPC Classifications →
• Coordination:Then Meetingconsult cadences,the communication protocols, and escalation paths.
• Decisions: Authority limits (budgetary and operational), strategic planning cycles, and performance evaluation metrics.

Excluded from DOS (Technical Layer):Repository

• Engineering Standards: IPC classifications, component footprints, and schematic design rules.
• Manufacturing Processes: Solder paste printing parameters, reflow profiles, and AOI programming guides.
• Safety & Compliance: ISO 9001/13485 specific work instructions (unless explicitly referenced for governance).

Pro-Tip: If the question asksis "How do I solder this?", look tocheck the TechnicalTech Repository.Repo. If the question asksis "Who decidesapproves ifthe wepurchase buyof the soldering machine?", lookcheck here.the DOS.

The Documentation Hierarchy

Not all documents carry equal weight. Operational integrity requires distinguishing between immutable laws and flexible guidelines.

1. Principles (The Constitution)

• Status: Immutable.
• Function: Strategic non-negotiables to guide decisions when no rule exists.
• Change Control: Board/CEO consensus only.

2. Policies (The Rules)

• Status: Mandatory.
• Function: Risk mitigation (Legal/Financial/Safety).
• Language: Uses "MUST" or "SHALL".
• Compliance: 100% required. Deviation constitutes a violation.

3. SOPs (The Workflows)

• Status: Standard Practice.
• Function: Reproducibility and efficiency.
• Language: Uses "SHOULD".
• Compliance: Follow unless a specific technical constraint forces a deviation.

4. Templates (The Tools)

• Status: Recommended.
• Function: Reduce cognitive load.
• Compliance: Modify as needed for context.

Language Standards (The Code)

Precision prevents paralysis.

• MUST / SHALL = Mandatory. Failure to comply is a disciplinary event.
• SHOULD = Recommended. Deviation requires documented justification.
• MAY = Optional. Left to professional judgment.

Ownership and& Change Control

PoliciesStatic withoutdocuments clearbecome ownershipoperational degraderisks. into suggestions. Every module within theThe DOS is dynamic, but changes must havebe acontrolled designatedto Ownermaintain responsiblesystem for its maintenance, accuracy, and enforcement.integrity.

Ownership Matrix:

• If Modulemodule impacts Company Strategy/Culture → ThenOwner: Owner is CEO.CEO.
• If Modulemodule impacts Talent/Compensation/Org Comp/Structure → ThenOwner: Owner is HR Director.Director.
• If Modulemodule impacts Operational CoordinationOperations/Logistics → ThenOwner: Owner is COO.COO.

Revision Logic:

Dynamic organizations require dynamic standards. Static documents become obsolete risks.

1. Major Revision: Changes affecting compensation, authority limits, or legal compliance.
   • Requirement: Review by Owner + Approval by CEO.
   • Notification: Company-wide push.
2. Minor Revision: Clarifications, formatting fixes, or process optimization without structural change.
   • Requirement: Direct update by Owner.
   • Notification: Affected teams only.

The Single Source of Truth

Tribal knowledge is a liability. Reliance on "how we've always done it" or verbal tradition introduces variance and failure points during scaling.

The Documentation Standard:Truth:

• Written = Standard: Only processes documented in this Handbookhere are enforceable standards.enforceable.
• Verbal = Suggestion: UnwrittenHallway instructions,agreements or Slack messages, or hallway agreementsmessages are operational suggestions, not mandates. They hold no disciplinary weight.
• Conflict Resolution:Logic: If aVerbal verbalDirective directive conflicts with the Handbook, the≠ Handbook prevails→ untilThen officiallyHandbook amended.prevails.

Exceptions

Waiver and Waivers

Protocol:

Rigidity causes fracture;fracture. controlledControlled flexibility allows resilience. Deviations from the DOS are permitted only through a formalized waiver process to manage risk.

Waiver Protocol:

• Condition: Immediate operational necessity or experimental pilot.
• Action: Submit "Process Waiver Request" to Policy Owner.
• Requirement:Constraint: WaiverWaivers mustMUST definehave a Termination Date (≤ 390 months)days).
• Outcome: On expiry, therevoke waiver isor eitherrewrite revokedthe (returnstandard.

Enforcement & Diagnostic Logic

Punishing every error hides systemic failures. Respond to standard)violations orbased on root cause, not outcome.

Violation Diagnostic Sequence:

1. Check the System: If the standard iswas rewrittenunclear/inaccessible to→ incorporateThen Rewrite Policy. (No Penalty).
2. Check the exception.Training: If the individual lacked training → Then Train. (No Penalty).
3. Check the Intent: If standard/training were clear but violation was accidental → Then Coach/Warn.
4. Discipline: If violation was willful or repeated → Then Initiate Corrective Action.

Pro-Tip: Process Correction > Person Correction. A rule that is consistently broken is usually a bad rule, not a sign of bad employees.

Final Checklist

Parameter	Specification	Control Authority
Governance Scope	People, Decisions, Coordination	CEO / HR
Technical Scope	Manufacturing, Engineering, Quality	CTO / COO
ValidityMandatory Language	WrittenMUST / SHALL content only	DOSPolicy Owner
Waiver DurationLimit	≤ 90 daysDays (Mandatory Expiry)	Policy Owner
Conflict LogicResolution	Written Handbook overrides Verbal	CEO
Change Approval	Major (CEO + Owner) / Minor (Owner)	Owner
Enforcement	Fix System → Train → Coach → Discipline	HR / Manager